Ikea investing 47 million euros in new furniture factory in Lithuania

Ikea is investing almost 47 million euros in a new furniture factory in Kazlu Ruda, a town in southern Lithuania.

The project is expected to create at least 20 new jobs, reports LETA/BNS.

The group plans to complete the furniture production expansion project, worth 46.8 million euros in total, in 2019, Lithuania's chipboard and furniture manufacturer Ikea Industry Lietuva says in its report for the 2016-2017 financial year filed with the Center of Registers.

Ikea Industry Lietuva has signed an investment agreement with the Economy Ministry under which the company committed itself to investing 15.5 million euros in the expansion project and the ministry pledged to provide 1.44 million euros to cover eligible costs.

The company announced the planned investment in Kazlu Ruda late September, but it gave no details as to the amount.

It then said that construction on the new facility was expected to be completed in the summer of 2019.

Ikea Industry Lietuva posted 102.742 million euros in revenue for the financial year ended August 31, 2017, a rise of 4% year-on-year. Its net profit dropped by 36.4% to 4.27 million euros.

The Lithuanian company is 100% owned by Dutch-registered Ikea Industry Holding and its ultimate shareholder is Dutch-registered Ingka Holding. ■